Regular saver ISA tracking ftse100

RetfordRover

Hi,
I'm interested in investing in a stocks and shares ISA tracking the ftse100. Initially I would like to do this as a regular monthly amount with periodic additional payments as some of my other investments mature.
Any advice from experience or alternate suggestions would be appreciated.

wmb194

RetfordRover said:

Hi,
I'm interested in investing in a stocks and shares ISA tracking the ftse100. Initially I would like to do this as a regular monthly amount with periodic additional payments as some of my other investments mature.
Any advice from experience or alternate suggestions would be appreciated.

This would be easy and cheap to do with InvestEngine. After opening your account you'd create a regular order to buy an ETF that tracks the FTSE100 e.g., HSBC's LSE:HUKX, iShares' LSE:ISF, Vanguard's LSE:VUKE.

https://www.justetf.com/uk/how-to/ftse-100-etfs.html

InvestEngine uses open banking to take the money from your account. I've been using it for a while now for a weekly investment into an ETF and it works really well.

https://investengine.com/

jimjames

RetfordRover said:

Hi,
I'm interested in investing in a stocks and shares ISA tracking the ftse100. Initially I would like to do this as a regular monthly amount with periodic additional payments as some of my other investments mature.
Any advice from experience or alternate suggestions would be appreciated.

HL will allow you to do that. Whether it is a good idea to solely track the FTSE100 is another matter.

dunstonh

I'm interested in investing in a stocks and shares ISA tracking the ftse100.

That would be an unusual choice.  An inexperienced investor mistake.

Not only you are you limiting yourself to one country (first mistake), you are limiting yourself to Large Cap companies only (second mistake).
The third mistake is more opinion but the FTSE100 is known as a dinosaur index for two reasons.  1) its high ratio of fossil fuel companies and 2) its dominated by old industries that dominated in a past era and has little for the future.

MX5huggy

H&L would charge you 0.45% per year plus dealing charges if you don’t set up a regular payment. InvestEngine would be free. 

28% of the FTSE is just 4 companies its is not a diverse investment. Investigate Global Index trackers and see if those meet you requirements better.

RetfordRover

Thank you for your comments, I'm looking for a UK only investment (personal choice) and the ftse100 is up 7% on the year to date. I'm also trying to avoid fashionable shares particularly those where the share value is much greater than their assets.

RetfordRover

Correction 5.7% (I miss typed).

Beddie

Trading 212 is another choice. No platform or dealing charges.

wmb194

RetfordRover said:

Thank you for your comments, I'm looking for a UK only investment (personal choice) and the ftse100 is up 7% on the year to date. I'm also trying to avoid fashionable shares particularly those where the share value is much greater than their assets.

You might also consider Investment Trusts. You can buy many of those at a discount to NAV.

https://www.theaic.co.uk/aic/find-compare-investment-companies?geo=UK&sortid=Name&desc=false

spreadsheeterapple

There are 2 ways you can do a FTSE100 Index Tracker
- ETF (Exchange Traded Fund) - and some options were mentioned in the first comment above.
- a Fund - which is different from an ETF.

I'm not quite sure what to call the latter other than 'fund' because that is what they ARE called, but it doesn't help in explaining to newbies that an ETF and a Fund are different when the same word is used in both!

The key point to probably consider is the different charging structures for whichever investment/trading platform you decide upon. It's not just that historically an ETF meant paying trading fees whereas a Fund didn't, because lots of platforms now don't charge trading fees, or don't charge trading fee if it's a monthly regular investment, or charge when it's in an ISA but don't charge if not an ISA. You need to do a bit of digging in the platforms to compare total costs.

Check for
- the management fee within the fund itself, often called an OCF Ongoing charges figure); you can expect lows such as 0.12%
- management fee for use of the platform and to manage your ISA account (by platform I mean Hargreaves Lansdown, AJ Bell, Fidelity, etc; there are loads)
- trading fee if any
- bid/offer spread (difference between buying/selling price); ETFs have a spread, Funds don't as they are single-priced if an OIEC Fund or Unit Trust Fund
- country where the fund is domiciled; that might sound strange as you're wanting a UK tracker, but the fund might not be held in UK, it might be Jersey, Ireland, or abroad. In normal conditions over the past decades there haven't been any issues as Western currencies have been fairly stable against one another, but it can't be said there will never be any issues, there is now turmoil in Europe which might change everything we thought we knew about how investments worked.
- basis of the index fund; fully-replicating, partial, or synthetic. Personally I avoid synthetic as derivatives can behave unpredictably against the investor if there are major economic shocks & market turmoil.

InvesterJones

spreadsheeterapple said:

There are 2 ways you can do a FTSE100 Index Tracker
- ETF (Exchange Traded Fund) - and some options were mentioned in the first comment above.
- a Fund - which is different from an ETF.

I'm not quite sure what to call the latter other than 'fund' because that is what they ARE called, but it doesn't help in explaining to newbies that an ETF and a Fund are different when the same word is used in both!

OIEC/Unit Trusts perhaps.. (or mutual funds for our American friends) but that's not very newbie friendly! Some platforms call them OIECs/UTs, some 'funds'.

But as per more recent comments, a FTSE100 tracker may not be what the OP is after per se.